Bitwise Asset Management has announced its commitment to donate 10% of the profits generated by its Bitwise Bitcoin ETF (BITB) to support Bitcoin open-source development. This initiative marks a significant step in fostering the growth and sustainability of the Bitcoin ecosystem.
Bitwise’s strategic support for Bitcoin developers
The decision by Bitwise Asset Management to allocate a portion of its Bitcoin ETF profits to the open-source development of Bitcoin has been hailed as a forward-thinking move. The CEO of Bitwise, Hunter Horsley, expressed his enthusiasm for this initiative, emphasizing the pivotal role of core developers in the evolution of Bitcoin. By acknowledging the contributions of these developers, Bitwise aims to ensure the long-term viability and advancement of the Bitcoin network.
Horsley pointed out that since Bitcoin’s inception over 15 years ago, it has relied heavily on a committed community of open-source developers. These individuals, often called the unsung heroes of the Bitcoin world, have been instrumental in its growth without any formal fundraising process. Bitwise’s contribution is a way to give back to this community, ensuring these developers have the necessary resources to continue their important work.
Recent SEC approval boosts confidence in Bitcoin ETFs
The announcement from Bitwise Asset Management comes on the heels of the United States Securities and Exchange Commission (SEC) approving 11 spot Bitcoin exchange-traded fund (ETF) applications. This regulatory milestone, achieved on January 10, signifies a growing acceptance and mainstreaming of Bitcoin in traditional financial markets. The approval allows asset managers to expose their clients to Bitcoin through ETFs, potentially widening the investor base to those who have not previously held Bitcoin.
This development is a positive step for the cryptocurrency industry, bringing in a new wave of investment and interest. Bitwise, in particular, stands to benefit from this increased interest, as it offers one of the newly approved Bitcoin ETFs. The company’s decision to support open-source Bitcoin development with a share of its profits reflects a broader trend in the cryptocurrency industry, where companies increasingly recognize their responsibility to contribute to the health and growth of the ecosystem in which they operate.
Commitment to long-term support and industry growth
The commitment by Bitwise to donate a significant portion of its Bitcoin ETF profits to open-source development is not just a one-time gesture. Hunter Horsley has stated that these donations will be made annually for at least ten years. This long-term commitment underscores Bitwise’s understanding of the sustained effort required to maintain and advance the Bitcoin network.
The donations will be made without expecting repayment or direct benefit to Bitwise. This approach reflects a genuine desire to contribute to the industry’s expansion rather than a transactional relationship. The selected non-profit organizations, such as Brink, have been chosen due to their proven track record supporting Bitcoin open-source development. Mike Schmidt, the executive director of Brink, emphasized the importance of this sustained support, especially in light of the recent SEC approval of Bitcoin ETFs. He noted that such backing is crucial for the continuous growth and innovation within the Bitcoin ecosystem.